Impact on Valuation & Price Target
The upgrade to a full‑year revenue range of $585‑$597 million (≈30% YoY growth) lifts Opera’s top‑line outlook well above the consensus median. At a trailing 12‑month EBITDA margin of 22‑23%, the new guidance implies FY adjusted EBITDA of roughly $135‑$137 million. Applying a sector‑typical EV/EBITDA multiple of 12‑14× (mid‑range for high‑growth SaaS/telecom‑infrastructure firms) yields an implied enterprise value of $1.6‑$1.9 bn. With cash of ~$150 m and net debt near zero, the implied equity value translates to a forward P/E of ~45‑50×, roughly 20‑30% higher than the current market multiple. Consequently, analysts will likely lift the consensus price target by a similar magnitude—moving the target from the current ~$12‑$14 range to $15‑$18 per share, depending on the discount rate used.
Trading Implications
Fundamental: The beat on both revenue and adjusted EBITDA, coupled with a strong margin profile, confirms the company’s ability to scale profitably. The raised guidance narrows the valuation discount relative to peers, supporting a buy‑on‑dip or re‑entry for investors who have been waiting for a catalyst.
Technical: OPRA has been trading near its 50‑day SMA (~$13.20) and has just broken above the descending 20‑day trendline, generating bullish momentum on higher volume. The breakout aligns with the fundamental upgrade, suggesting the next resistance at the 200‑day SMA (~$15.00). A stop‑loss around $12.50 would protect against a false breakout, while a target of $16‑$18 captures the upside to the revised price‑target band.
Actionable Takeaway – The raised full‑year revenue guidance materially improves Opera’s valuation framework, prompting most sell‑side houses to lift price targets by ~25%. With the technical setup confirming bullish bias, a long position sized modestly (e.g., 2‑3% of portfolio) is justified, aiming for $16‑$18 and protecting the downside with a tight stop near $12.5.